Interested to Processing Oil and Gas Blocks in Indonesia? Here the Terms and Conditions

Wednesday, 31 October 2018 02:41

Interested to Processing Oil and Gas Blocks in Indonesia? Here the Terms and Conditions

Deputy Minister of Energy and Mineral Resources (ESDM) Arcandra Tahar explained three main criteria set by the government in determining the winning bidder for the Phase II 2018 Conventional Oil and Gas Work Area. These three criteria were fulfilling the requirements and conditions of the auction, financial health and the company's track record.

"What we see is their offer in accordance with the terms and conditions that we have set before, such as the Definite Work Commitment. There is an indication of what they input. The average is around US $ 60 dollars or more than Rp1 trillion," Arcandra stated in Jakarta, Tuesday. (23/10).

According to Arcandra, the government evaluated in the proposals that submitted by auction enthusiasts. The assessment of the proposal depends on the offer of the extent of the future development of oil and gas work area.

Another criterion taken by the Ministry of Energy and Mineral Resources is the financial health of companies participating in the bidding process. It determines the winning company is able to finance and carry out petroleum operations.

"The company must be truly engaged in the oil and gas sector," he said.

At this auction, there were two work areas that were sold, the government obtained a Total Signature Bonus of US $ 5,500,000, and a Definite Commitment of US $ 64,000,000 which included G & G activities of US $ 1,000,000, SeismiK 2D Survey 300 km, Seismic 3D 400 km2 and drilling four wells.

>Meanwhile, four work areas, namely Makasar Strait, Selat Panjang, Andika Bumi Kita and South East Kalimantan who do not yet have winners will be auctioned again next week. The government also gave opportunities to re-bid to the company that had participated in the Phase II Conventional Oil and Gas work area auction but failed to become a winner.

"We are opening companies that if interested in re-bidding to work areas that are set today with no winners. They are allowed (to join again)," he concluded.

Director of Oil and Gas Djoko Siswanto explained that the government also has other options by offering oil and gas work areas which don’t have winner to PT. Pertamina.

"Pertamina is interested in conducting a joint study, we will see it later," he concluded.